A company has the following information related to its fixed assets for the year ended December 31,
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Question:
A company has the following information related to its fixed assets for the year ended December 31, 2022:
- Cost of a new machine purchased on January 1, 2022: $100,000
- Accumulated depreciation, January 1, 2022: $50,000
- Depreciation expense for the year ended December 31, 2022: $20,000
- Sale of old machine (original cost $30,000 and accumulated depreciation of $25,000) on November 1, 2022: $5,000
Required:
(a) Calculate the book value of the company's fixed assets at December 31, 2022. (5 marks)
(b) Calculate the net gain or loss from the sale of the old machine. (5 marks)
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
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